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1660 Results

April 29, 2026

Monetary Policy Report—April 2026—In focus—

Sector-specific trade restrictions are adversely affecting the Canadian economy. Steel and lumber exports have declined significantly, while others have held up better in comparison. Overall, declines in exports have been less severe than expected, reflecting both business adaptability and government policy actions.

Digitalization and Inflation: A Review of the Literature

In the past few years, many have postulated that the possible disinflationary effects of digitalization could explain the subdued inflation in advanced economies. In this note, we review the evidence found in the literature. We look at three main channels.

From Micro to Macro Hysteresis: Long-Run Effects of Monetary Policy

Staff working paper 2024-39 Felipe Alves, Giovanni L. Violante
We explore the long-run effects of a monetary policy shock in a Heterogeneous Agent New Keynesian model built on the micro evidence that job losses lead to persistently lower individual earnings through a combination of skill decay and abandonment of the labour force.

Climate Change and Socio-economic inequality in the US

Staff working paper 2026-16 Barbara Sadaba, Tatjana Dahlhaus
This paper examines how climate change affects income inequality across US states. Using a new climate-inequality VAR and a century of daily temperature data, it shows that shifts across the full temperature distribution—not just average warming—have diverse effects on within-state inequality.

Forecasting Recessions in Canada: An Autoregressive Probit Model Approach

Staff working paper 2024-10 Antoine Poulin-Moore, Kerem Tuzcuoglu
We forecast recessions in Canada using an autoregressive (AR) probit model. The results highlight the short-term predictive power of the US economic activity and suggest that financial indicators are reliable predictors of Canadian recessions. In addition, the suggested model meaningfully improves the ability to forecast Canadian recessions, relative to a variety of probit models proposed in the Canadian literature.
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